Citigroup reported a profit for the first quarter 2018 that increased about 13 percent from last year, driven by the higher revenues and a lower effective tax rate, partially offset by higher expenses and cost of credit.
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Revenues increased 3% from the prior-year period, driven by growth in both the Institutional Clients Group and Global Consumer Banking, partially offset by lower revenues in Corporate / Other primarily due to the continued wind-down of legacy assets. Quarterly earnings per share topped analysts' expectations.
Net income for the first quarter 2018 increased about 13 percent to $4.62 billion from the prior year's $4.09 billion.
Earnings per share were $1.68 up 24% from $1.35 per share in the prior-year period, driven by the growth in net income and a 7% reduction in average diluted shares outstanding.
Analysts polled by Thomson Reuters expected the company to report earnings of $1.61 per share for the firsts-quarter. Analysts' estimates typically exclude special items.
Adjusted net income to common shareholders grew to $4.35 billion from $3.79 billion in the prior year.
Quarterly Citigroup revenues were $18.87 billion, up 3% from the prior year's $18.37 billion, driven by 7% aggregate growth in Global Consumer Banking and Institutional Clients Group, partially offset by a 51% decrease in Corporate/Other, primarily due to the continued wind-down of legacy assets. Wall Street expected revenues of $18.86 billion.
Global Consumer Banking revenues of $8.4 billion increased 7%, driven by growth across all regions and the impact of the Hilton portfolio sale in North America Citi-Branded Cards. In constant dollars, revenues increased 6% and 4% excluding the sale of the Hilton portfolio.
Institutional Clients Group revenues of $9.8 billion increased 6%, as growth in Treasury and Trade Solutions, Private Bank, Corporate Lending,Equity Markets and Securities Services more than offset declines in Investment Banking and Fixed Income Markets.
Corporate / Other revenues of $591 million decreased 51% from the prior-year period, primarily driven by the wind-down of legacy assets. ■